We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IDEX Q3 Earnings Surpass Estimates, Sales Increase Year Over Year
Read MoreHide Full Article
IDEX Corporation’s (IEX - Free Report) third-quarter 2024 adjusted earnings of $1.90 per share surpassed the Zacks Consensus Estimate of $1.89. The bottom line decreased approximately 10.4% from the year-ago quarter’s earnings of $2.12. However, it matched the upper band of the management’s projected range of $1.85-$1.90 per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
IEX’s Revenue Details
IDEX’s net sales of $798.2 million beat the Zacks Consensus Estimate of $791 million. The top line increased approximately 1% year over year. Organic sales were flat year over year. Acquisitions/divestitures had a positive impact on sales of 1%.
IEX reports net sales under three business segments, the results of which are discussed below:
Net sales from the Fluid & Metering Technologies segment totaled $300.8 million, flat year over year. Our estimate for segmental net sales was $294.6 million. Organic sales increased 2% year over year. Acquisition/divestitures impacted sales by 3%, while foreign currency translation had a positive impact of 1% on sales.
Net sales from the Health & Science Technologies segment totaled $311.0 million, flat year over year. Our estimate for segmental net sales was $308.5 million. Organic sales declined 5% year over year.
Net sales from the Fire & Safety/Diversified Products segment totaled $188.0 million, which increased 4% year over year. Our estimate for segmental net sales was $186.5 million. Organic sales increased 4% on a year-over-year basis.
IDEX Corporation Price, Consensus and EPS Surprise
IDEX’s cost of sales increased 0.1% year over year to $444.3 million. The gross profit was $353.9 million, up 1.2% year over year. The gross margin was 44.3% compared with 44.1% in the year-ago quarter.
Selling, general and administrative expenses increased 10.3% year over year to $182.9 million. Adjusted EBITDA decreased 5% year over year to $214.3 million. The adjusted EBITDA margin decreased 150 bps year over year to 26.9%.
The operating income was $168.0 million, down 6.5% year over year. The operating margin was 21%, down 160 bps year over year. Interest expenses (net) decreased 24.8% year over year to $10.3 million.
Balance Sheet and Cash Flow of IDEX
While exiting the third quarter, IDEX’s cash and cash equivalents were $633.2 million compared with $534.3 million at the end of fourth-quarter 2023. Long-term borrowings (net) were $2.1 billion compared with $1.33 billion at the end of fourth-quarter 2023.
In the first nine months of 2024, IDEX generated net cash of $495.5 million from operating activities, down 3.9% from the year-ago period. Capital expenditures were $49.6 million compared with $68.3 million in the first nine months of 2023. In the same period, free cash flow was $445.9 million, down 0.3% year over year.
IDEX paid out dividends totaling $153.0 million in the first nine months of 2024, up 7.5% year over year.
IDEX’s Outlook
For the fourth quarter, IDEX anticipates adjusted earnings to be in the band of $2.01-$2.06 per share.
On a GAAP basis, IEX predicts earnings to be in the range of $1.64-$1.69 per share and organic sales to increase in the range of 3-4% from the respective year-ago readings.
For 2024, IDEX anticipates adjusted earnings to be in the band of $7.85-$7.90 per share compared with the earlier projected range of $7.80-$7.90. The figure indicates a decrease from earnings of $8.22 per share reported in 2023. On a GAAP basis, earnings are predicted to be in the band of $6.65-$6.70 per share, down from the earlier guided range of $6.85-$6.95.
Organic sales are predicted to decline in the band of 1-2%.
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
IDEX Q3 Earnings Surpass Estimates, Sales Increase Year Over Year
IDEX Corporation’s (IEX - Free Report) third-quarter 2024 adjusted earnings of $1.90 per share surpassed the Zacks Consensus Estimate of $1.89. The bottom line decreased approximately 10.4% from the year-ago quarter’s earnings of $2.12. However, it matched the upper band of the management’s projected range of $1.85-$1.90 per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
IEX’s Revenue Details
IDEX’s net sales of $798.2 million beat the Zacks Consensus Estimate of $791 million. The top line increased approximately 1% year over year. Organic sales were flat year over year. Acquisitions/divestitures had a positive impact on sales of 1%.
IEX reports net sales under three business segments, the results of which are discussed below:
Net sales from the Fluid & Metering Technologies segment totaled $300.8 million, flat year over year. Our estimate for segmental net sales was $294.6 million. Organic sales increased 2% year over year. Acquisition/divestitures impacted sales by 3%, while foreign currency translation had a positive impact of 1% on sales.
Net sales from the Health & Science Technologies segment totaled $311.0 million, flat year over year. Our estimate for segmental net sales was $308.5 million. Organic sales declined 5% year over year.
Net sales from the Fire & Safety/Diversified Products segment totaled $188.0 million, which increased 4% year over year. Our estimate for segmental net sales was $186.5 million. Organic sales increased 4% on a year-over-year basis.
IDEX Corporation Price, Consensus and EPS Surprise
IDEX Corporation price-consensus-eps-surprise-chart | IDEX Corporation Quote
IDEX’s Margin Profile
IDEX’s cost of sales increased 0.1% year over year to $444.3 million. The gross profit was $353.9 million, up 1.2% year over year. The gross margin was 44.3% compared with 44.1% in the year-ago quarter.
Selling, general and administrative expenses increased 10.3% year over year to $182.9 million. Adjusted EBITDA decreased 5% year over year to $214.3 million. The adjusted EBITDA margin decreased 150 bps year over year to 26.9%.
The operating income was $168.0 million, down 6.5% year over year. The operating margin was 21%, down 160 bps year over year. Interest expenses (net) decreased 24.8% year over year to $10.3 million.
Balance Sheet and Cash Flow of IDEX
While exiting the third quarter, IDEX’s cash and cash equivalents were $633.2 million compared with $534.3 million at the end of fourth-quarter 2023. Long-term borrowings (net) were $2.1 billion compared with $1.33 billion at the end of fourth-quarter 2023.
In the first nine months of 2024, IDEX generated net cash of $495.5 million from operating activities, down 3.9% from the year-ago period. Capital expenditures were $49.6 million compared with $68.3 million in the first nine months of 2023. In the same period, free cash flow was $445.9 million, down 0.3% year over year.
IDEX paid out dividends totaling $153.0 million in the first nine months of 2024, up 7.5% year over year.
IDEX’s Outlook
For the fourth quarter, IDEX anticipates adjusted earnings to be in the band of $2.01-$2.06 per share.
On a GAAP basis, IEX predicts earnings to be in the range of $1.64-$1.69 per share and organic sales to increase in the range of 3-4% from the respective year-ago readings.
For 2024, IDEX anticipates adjusted earnings to be in the band of $7.85-$7.90 per share compared with the earlier projected range of $7.80-$7.90. The figure indicates a decrease from earnings of $8.22 per share reported in 2023. On a GAAP basis, earnings are predicted to be in the band of $6.65-$6.70 per share, down from the earlier guided range of $6.85-$6.95.
Organic sales are predicted to decline in the band of 1-2%.
IEX’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation (JBT - Free Report) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.